Finance Training Committee

The Finance Training Committee replaced the Finance Training Network in July 1999 with the aim of giving the group more structure and being representative of all departments. It was set up to help to spread best practice and initially to help departments to give the assurance required by trigger point 3 of the implementation of Resource Accounting and Budgeting that suitable and robust training RAB training arrangements were in place.

The terms of reference for the Committee are:

To contribute towards the achievement of implementing RAB especially training arrangements.
Thereafter to exchange good practice in terms of finance training and guidance (particularly for generalist managers); share information on the skills required to enhance financial management within departments and agencies; and identify ways to meet the increasing demand for finance training, particularly through the ongoing implementation of resource budgeting.

For further details contact your finance training committee representative or, alternatively, Kevin Ross (DART) on 020 7270 1747 (GTN 270 1747) or Roberta Woodcock on 020 7270 1746 (GTN 270 1746).

email: kevin.ross@hm-treasury.gov.uk or roberta.woodcock@hm-treasury.gov.uk

Training Assurance March 2001

Review and Conclusions

Purpose:

To review the information received from departments and the progress made since the assurance in November 1999.

Provide recommendations relating to future monitoring of progress made in respect of embedding RAB in departments, the use of management information and finance and accountancy training.

Overall assessment:

On the whole departments have continued to make good progress in the delivery of training to staff, continuing to identify new groups of people requiring specific themes of training. In particular, departments have recognized the need to move from solely delivering training to focusing on the practical implications producing guidance and delivering associated training on the interpretation of information and how it can be used in the decision making and planning process.

It should be noted that those departments where HMT had deep reservation, in 1999, regarding their ability to produce accounts have made great progress into addressing the problems identified, though there is still some way to go. In our opinion to enable them to produce accounts and use the information to the maximum benefit they will need to develop their long-term strategy and training plans to reflect that of the business. However, to aid all departments in their ongoing quest to deliver quality training at the most opportune time DART will continue to disseminate best practice and encourage FTC representatives to share both knowledge and, where appropriate, resources.

As part of the scrutiny exercise a number of examples of good practice have been identified and it has been agreed, with FTC members, that these should be shared amongst the committee members. In particular, copies of the following documents are to be obtained and distributed in either hard copy or via the DART web site:

Customs & Excise	Resource Management Guidance Outline of the associated course
DTLR	Outline of Financial Awareness course
DTI	Accounts Preparation Manual Guide to resource Based In Year Monitoring and In year Resource
Home Office	EOY Balance guidance
Inland Revenue	FPP Program Good Practice Papers
OFT	Finance Handbook
OFTEL	Outline of training for new staff
HMT	Accountancy and Finance courses

In addition, a number of departments have provided copies of their core competency frameworks. These will be used as reference documents to update the original framework issued by DART in 1997.

The assurances have also confirmed a shift in the way training is being delivered, departments are moving from the ‘sheep-dip’ one size fits all approach to more tailored training to meet the direct needs of target groups. Departments have also recognized the need to deliver training on a modular basis rather than two and three day long courses which are unpopular with staff and managers alike. Timing of training, which has always been an issue, has, also, been addressed to ensure the training of individuals is not only at the most appropriate time but takes account of other pressures and is delivered at a mutually convenient time.

Departments are beginning to investigate the changing role of the budget manager and the need to make the role full time on a divisional or directorate basis. This move is a direct result of departments examining the skills required to produce and use resource based information across the whole organization, not just the traditionally recognized operational areas. An example of this, where it is hoped the result will be to assist in the initial bedding in period is the introduction of Finance Contacts by the DSS (now DWP). This is a central point of contact to provide guidance and information to individuals working in operational posts often within a regional structure

Follow up:

A number of recommendations are made at the end of this paper and to support their implementation a number of good practice notes are to be produced covering:

Evaluation Questionnaires – design, use, collation and presentation of results;
Core Competencies: their use and how to have them formally adopted;
Developing long term training strategies and plans for finance training;
Training new staff – a finance model

As part of the assurance exercise departments offered information relating to the delivery of future training programmes, and these forward milestones will need to be monitored. This will ensure the completion of the training process to deliver information and staff skills. As part of the ongoing process to develop up to date training programmes departments are reviewing their competencies and training courses to ensure they meet the current needs of the business, again the outcome of these reviews will require monitoring.

The introduction of professional qualification at all levels, that is from AAT Diploma to full CCAB, is an issue that a number of departments have highlighted and their desire to implement a formal training programme. A number of FTC contacts have already enquired whether DART would be willing to aid in the introduction of these schemes by attending seminars and launches; a positive response has been given to the principle. In a move to incorporate Resource Management into the main stream business, departments are now promoting Resource Management as part of the much wider Modernising Government agenda and beginning to dispense with the RAB label delivering training in terms of the way organizations operate and monitor their finances. It is envisaged that the recently published ‘ Managing Resources’ guides will assist departments in incorporating RAB into the day to day operations of their departments.

In conclusion, whilst progress continues to be made a number of departments still face considerable difficulties in fully implementing Resource Management. However, we will continue to provide ongoing support and guidance and encourage them in their endeavours to deliver training to equip staff with the skills and knowledge to produce the necessary information for audit and management purposes.

Recommendations:

A number of key issues have been drawn from the assurances, which need to be addressed by departments, but especially by the FTC. The recommendations to further these issues are:

to actively seek a cultural change from the reactive use of information to a more proactive use,
to identify the requirement of the SCS and deliver appropriate timely training;
move to incorporate Resource Management training into core departmental finance training;
undertake evaluation of training against the business need;
departments should aspire to adopt finance competencies, once developed; and
to develop long term training strategies and plans to mirror the business strategy and plan.

To support the recommendations DART, in conjunction with FTC members, will

undertake a six month review meeting with departments where issues were raised
explore the ways in which a further individual assurance could be sought, without burdening departments to the same extent as the March 2001 exercise
continue to promote the sharing of information and good practice, initially DART will distribute documents identified as part of the assurance exercise
actively pursue the use of the DART website for communication and the sharing of information

Annex A

Background:

As with the 1999 assurance, the exercise was a means by which departments could demonstrate that adequate training programmes are in place and that suitable numbers of professional staff are in place to ensure the delivery of quality and timely information for both internal and external customers. In terms of future plans departments were required to assure DART that training relating to interpretation and use of management information is either in place or under development.

The assurance was structured to follow up issues raised from the 1999 assurance, to address issues relating to how RAB information, produced in departments’, is being used by finance staff and to address concerns raised by the 29^th PAC hearing. (‘Progress on Resource Accounting and the Adoption of Resource Based Supply’ July 2000)

In total 45 assurances were expected and at 31st March 21 had been received and approved by DART; a further 8 had been seen in their draft format and 12 of those not previously seen were expected to be received by 6^th April. The last assurance was received early June, however three departments failed to provide any assurance, despite numerous reminders. Therefore, at this stage, DART are unable to provide an opinion on progress made since the November 1999 assurance to either Andrew Likierman, and in turn the PAC.